Mmogle

Understanding
MMOG-LE
Materials Management Operations
Guideline / Logistics Evaluation
Copyright 2020 © DWI

I’m Danang
I feel happy to be able to share something with you, again
• Today, I’m senior business development in SGS Indonesia.
• Since year 2004 – I have been IATF Automotive auditor
• Previously I worked in Astra Daihatsu Motor (1995 – 2003)
• I have Six Sigma Master Black Belt in year 2001
• My frist job experience in Dirgantara Indonesia – Inc. (IPTN) for
N250 project for following period :1992 – 1995.

What is MMOG-LE..?
• A global standard of industry best practice for supply chain
management processes
• A comprehensive supply chain management self-assessment
that is used to evaluate production, parts and service, and
warehousing processes to assure readiness to comply with
OEM supply chain requirements.
• Self-assessment and continuous improvement tool that
provides the means to enhance materials management
efficiency and accuracy while reducing costs from errors and
waste.

What is MMOG-LE..?
• Assessment tool to evaluate/select suppliers
• Completed at the site level
• Supply chain capabilities against best practice
• Used for production and after sales
• Provides site/plant score (e.g., A, B or C)
• Seen as the de facto standard for supply chain excellence, and
by achieving Level A classification you can ensure your processes
and delivery performance are at or near world-class.
• Version 4.0, Issued 5/2014 and MMOG/LE v5 – Version 5.0 under
development

What is MMOG-LE..?
• MMOG/LE was derived from the Odette Logistics Evaluation
(OLE) and AIAG’s Materials Management Operations
Guideline (MMOG), which were both originally published in
1999
• The tool can be used at all levels of the supply chain by
both supplier and customer throughout the entire product
life cycle, including early product development and pre-
production phases, and the post-production
aftermarket/service phases.

WHAT IS BASIC VERSION OF
MMOG/LE..?
• MMOG/LE was originally created as a best practice
assessment toolkit for the vehicle manufacturers. Over time,
some large, multi-national, Tier 1 organizations also started to
adopt MMOG/LE with Tier 2 suppliers.
• General feedback from the Tier 1 community is that the full
MMOG/LE is sometimes difficult to accomplish for suppliers in
the lower tiers.
• The Basic version has been developed to allow assessments to
be completed by the lower tier suppliers and provide a
meaningful roadmap of continuous improvement
opportunities.

Risk in
Automotive
Industries
Risk identification and
management is critical in the
automotive industry.
Supply chain disruptions and
threats are challenging the old
guard of risk control.
The traditional way of thinking
has to change

Risk in
Automotive
Industries
• New business
• New product launch
• Poor performing
suppliers
• Growing suppliers

New Risk
Management
Requirements

New Risk Management Requirements
Risk management planning >
Identify, prioritize, and
proactively manage your risks,
train, test and validate by
related contingency plans

IATF16949 Alignment
• The focus of IATF16949 is on the quality
of the product, whereas MMOG/LE is a
guideline for the efficient and timely
delivery of those same products.
• MMOG/LE adopts the same "process
approach" as IATF16949 for developing,
implementing, and improving the
effectiveness of SCM processes in order
to meet customer requirements

IATF16949 Alignment
• MMOG/LE must be reviewed from a
SCM perspective and IATF16949 from
a quality perspective.
• Consequently, the MMOG/LE
Assessment should be championed by
the Materials/Supply Chain Manager
while leveraging the expertise of
quality systems auditors.

IATF16949 Alignment
When used for SCM – Supply Chain
Management - processes, such an approach
emphasises the importance of:
• understanding and meeting requirements
• considering processes in terms of added
value
• obtaining results of process performance
and effectiveness
• continual improvement of processes based
on objective measurement
• visual management through the use of
charts and graphs

MMOG/LE in CSR
8.5.2 Identification and traceability
• The organization shall meet all logistics requirements as
specified by Material Planning and Logistics (MP&L…The
organization is required to achieve level "A" on the Material
Management Operation Guideline / Logistics Evaluation
(MMOG/LE) to achieve and maintain Q1. Key requirements for
MMOG/LE (Material Management Operation Guideline/Logistics
Evaluation) compliance include: Annual MMOG/LE assessment
completed and reported 1 May to 31 July each
year…Adequately trained personnel, as defined in MMOG/LE.

MMOG/LE required by GM

MMOG/LE
Application
Automotive OEMs and suppliers
can use this assessment for many
purposes, including:
• Assessing internal sites and
external suppliers
• Benchmarking current state /
best practices
• Driving continual improvement
• Increasing customer satisfaction
• Improving sub-supplier
performance

MMOG/LE User

MMOG/LE OVERVIEW : THE CHAPTERS

MMOG/LE
OVERVIEW
Excel spreadsheet highlights:
• Six chapters, 197 criteria
• Full and basic assessment
• Answer responses: Yes, No, N/A
• Criteria weighting:
• Scoring and classification
summary
• Tools to help track and
summarize progress
• Translated into 11 languages

MMOG/LE
OVERVIEW
A B C Classification Definition

MMOG/LE ASSESSMENT MODELS

What the purpose of MMOG/LE
o Customer demands for shorter lead times and reliable delivery have created a need for
a faster, more flexible, and more efficient flow of information and products throughout
all tiers of the supply chain.
o Logistics play an increasingly significant role in the competitive environment and only
through continual improvement can an organization ensure lower costs and increased
customer satisfaction.
o It is essential that SCM processes are controlled and monitored to ensure internal and
external customer expectations are met and to drive continual improvement through
the supply chain.

The purpose
of MMOG/LE
Provide an assessment tool that
enables a comprehensive evaluation
of SCM performance and capability.
MMOG/LE can be used by every
partner in the supply chain for self-
assessment or can be used between
business partners as an audit tool
for supplier selection and
evaluation.

The objective
of MMOG/LE
• A tool for lower tier suppliers to
verify that the ”basic” and most
critical SCM processes are in place
• Provide a path for organizations to
progressively migrate to the Full
assessment and world-class practices
• Enables organizations to assess sub
supplier risk
• Used to establish a rapid diagnosis of
critical areas (e.g. capacity
planning, inventory management)

MMOG/LE
BENEFITS

MMOG/LE ASSESSMENT MODEL

ACTION FOR CALL
Kalau anda merasa belum terlalu
jelas dan butuh bantuan – layangkan
kepada kami
Thank You
Danang Widoyoko
+62 811196211
danangwid1987@gmail.com
bersamamitramatra@gmail.com

Mmogle

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